HARARE — Axia Corporation Limited delivered a strong set of full-year results, with revenue surging 27% to US$249.5 million and profit before tax jumping 68% to US$19.3 million as higher volumes, competitive pricing and improved product availability boosted performance across the group.
The Victoria Falls Stock Exchange-listed diversified group, which released audited results for the year ended 30 June 2026, said EBITDA rose 21% to US$31.4 million from US$26 million in the prior year.
Cash generated from operations increased 67% to US$26 million, while headline earnings per share climbed 33% to 1.21 US cents. The stronger cash position was accompanied by a 20% reduction in borrowings, from US$15.9 million to US$12.7 million. Total assets rose 16% to US$148.2 million, while net current assets stood at US$48.3 million.
The company declared a final dividend of 0.20 US cents per share, taking the full-year dividend to 0.40 US cents. Shares will trade cum-dividend until 7 October, before going ex-dividend on 8 October. The record date is 9 October, with payment expected on or about 16 October 2026. A US$50,000 final dividend was also declared for the Axia Employee Trust.
Axia said growth was broad-based across its main operating businesses, with strong performances from retail, bedding, automotive and distribution operations.
TV Sales & Home, the group’s furniture and electronics retail business, was a major contributor, increasing volumes by 37% to 224,452 units and turnover by 36%. The business benefited from record Black Friday and Christmas promotions, competitive credit offerings and improved product availability. It also expanded its footprint with new branches at Churchill Avenue, Mvurwi, Norton, Hogerty Hill and army barracks, with nine more stores planned for the new financial year.
Restapedic Bedding increased volumes by 24% to 65,264 units, while revenue rose 30%.
Restapedic Lounge recorded a more modest 7% increase in volumes to 5,846 units despite the temporary relocation of its factory to Sunway City in August 2025.
Transerv, Axia’s automotive spares and accessories business, increased revenue by 10% on an 11% rise in volumes to 3.5 million units. The business opened six new shops during the year and plans to add another six shops and two service centres.
Axia also increased its effective interest in Transerv from 87.75% to 100% with effect from 1 June 2026 through a US$1.08 million share-based transaction, allowing it to complete the acquisition without using cash.
Distribution Group Africa (DGA) Zimbabwe recorded one of the group’s strongest performances, with revenue rising 50% as volumes increased 39% to 2.6 million units. The performance was supported by a major agency secured in October 2025. DGA’s regional businesses delivered mixed results. In Malawi, turnover fell 9% in US dollar terms despite 2% volume growth, while Zambia recorded a 25% increase in US dollar turnover on 2% volume growth.
The company said Zimbabwe’s operating environment remained relatively stable during the year. Average inflation stood at 4.4% between January and June 2026, while the premium on the alternative market exchange rate narrowed to about 12%. The increased activity in agriculture and mining supported the broader economy, while adequate funding of the Willing Buyer Willing Seller foreign-exchange market helped sustain business operations. But the company warned that supply-chain disruptions, high global fuel prices and the growth of counterfeit products and unregistered informal operators remained significant challenges for formal businesses.
Regional currency movements also affected the group’s operations. The Malawi Kwacha weakened 7% against the US dollar amid foreign-currency shortages, while the Zambian Kwacha strengthened 25%, supported by strong copper prices and fiscal discipline.
Tax uncertainty remained a key issue for the group, particularly around the treatment of historical Zimbabwe-dollar transactions following currency and legislative changes since 2018. ZIMRA assessed Axia for an additional US$1.673 million in income tax, penalties and interest for 2020 and 2021 on amounts that had already been settled in Zimbabwe dollars but were subsequently deemed payable in foreign currency. The group also faced VAT assessments totalling US$1.37 million for the 2023 to 2025 period. Axia said it had paid the assessed amounts under the “pay now, argue later” principle while lodging objections. The disputes contributed to an unusually high effective tax rate for the year.
Axia welcomed recent policy changes, including the deductibility of Intermediated Money Transfer Tax and the reduction of the IMTT rate on local-currency transactions from 2% to 1.5%.
Axia generated sufficient free cash flow to fund US$2.4 million in capital expenditure during the year. The group plans to develop a modern distribution centre in Sunway City for TV Sales & Home as it expands its retail network. It is also assessing acquisition opportunities in Zimbabwe and Zambia. The investment programme comes as the group seeks to build on the momentum recorded during the year while keeping debt under control.
Axia said continued economic stability would give the group greater visibility for planning and cost management. The company will focus on increasing market share through competitive pricing, quality products and further expansion of its retail network, while maintaining healthy gearing and protecting its balance sheet.
BDO Zimbabwe Chartered Accountants issued an unqualified audit opinion on the group’s financial statements, with revenue recognition identified as a key audit matter.
